<> By focusing its business model, the company intends to more effectively allocate capital, reduce expenditures, and unlock the value of its highly differentiated R&D pipeline. From March 2014 through April 2016, PROGENITY knowingly submitted false claims for payment to Medicaid and the VA by using CPT code 88271 to obtain reimbursement for NIPTs. As a result of fraudulently using CPT code 88721 and misrepresenting the type of test performed when submitting claims for payment to Medicaid and the VA for NIPTs, PROGENITY received payments for non-reimbursable tests, or received substantially higher payments than it was entitled to receive for the genetic testing services provided. Continued development of GI-targeted therapeutics differentiated by its DDS platform for localized, topical delivery and proprietary liquid formulations designed to optimize local issue uptake. Acting U.S. Attorney Audrey Strauss said: Progenity received millions of dollars from federal healthcare programs through its fraudulent billing and kickback schemes. Your email address will not be published. PROG stock closed yesterday at $2.04. IT'S HAPPENING! Officers & Board of Directors 2020-2021; Standing Committee; Gallery; Links; Patient's Corner; Members Zone; Contact Us; Top Bar Menu. We believe that we can deploy capital more efficiently by focusing on the differentiated innovation assets in our portfolio that have the greatest potential to drive shareholder value and generate non-dilutive dollars through scalable partnerships., Stylli continued, It is especially difficult to say goodbye to valued team members. First, from January 2012 through March 2016, PROGENITY paid draw fees to physicians or physician offices for blood specimens collected for PROGENITY tests. Federally Recognized Holidays, Employer Considerations for DOLs New AEWR Rule. The allegedly undisclosed side effects are related to the drug's injection delivery method. To achieve this vision, simplify its business model, and unlock shareholder value, the company will seek to reallocate resources to R&D and materially reduce operating expenditures by approximately 70%. Ms. Strauss thanked HHS-OIG, VA-OIG, DCIS, USAO SDCA, and the Medicaid Fraud Control Unit of the New York State Attorney Generals Office for their assistance with the case. The relator also alleges that despite Abbotts controls that are reportedly in place to prevent these kickback activities, when the Relator lodged complaints with Abbotts Office of Ethics & Compliance and Employee Relations Department with specific details about the practice-building activities and kickback scheme, Relator received no response or indication that an investigation would be conducted to address these practices, thereby signaling a lack of any effective enforcement of the supposed compliance policies and procedures. Proposed Nursing Home Disclosure Requirements Target Private Equity Regulation in the Post-FTX Environment: SECs Proposed Enhanced Can a Child Decide Whom They Want to Live With in Michigan? During the vast majority of the relevant period, PROGENITY did not have effective systems in place to ensure that the companys expenses for meals and happy hours for physicians and their employees complied with the Stark Law and the Anti-Kickback Statute. Uncategorized. On June 19, Progenity priced its initial public stock offering at $15 per share, raising more than $100 million. on behalf of the United States government and several states (including California, Florida, Maryland, New York, Texas, and Virginia) in the ongoing anti-kickback case against Abbott Laboratories. The total draw fees paid to physicians depended on the volume of blood specimens collected, so physicians would receive more money if they ordered more PROGENITY tests. Prior to founding Rockpointe, Thomas worked as a political consultant. The court has not ruled on that motion yet. <> Get U-T Business in your inbox on Mondays. By creating innovative smart pills designed for targeted drug delivery to the GI tract and systemic, needle-free delivery of biotherapeutics, we are developing therapies to improve patients lives. gPNu S_a|q\,j Dmxk+*nJ\6o0p"?TMX\}H94pS`Vwzw$uzLhP^ *o>4&e84A?~z(Y8)q} ]=kz3a5Q &EaSXm?GGo&vq.rp~dK*=.a\NYm#Kfdrx /`NR0a'pl&j,a#a#4-niql3qYYrqgd_koH!QbMsm@qwd&@Zpkhtr^`w^hCAu'lWQq:xwDiKHIZl{A-bK=/joYz"Q7@IsPcNH2P#uJx^LCa|yzXaE.GEE0Z>\s^]3ymyNE{kx]'LtQ"y*u=zA@ji`pu>h+vJ 2j)lAS4Mv;?^hi=9LPmq EEOC Reminds Employers How to Handle Applicants and Employees With UK's PRA Sets Regulatory Priorities for International Banks, FDA Asked to Allow Healthy Claims on Coffee. The company is also looking at unique drug delivery systems for gastrointestinal drugs and oral biotherapies. This settlement agreement is the result of a joint effort and demonstrates the DCISs commitment to work with the USAO-SDNY and its law enforcement partners to investigate and prosecute kickbacks and other fraudulent schemes that impact TRICARE., VA-OIG Special Agent in Charge Christopher Algieri said: VA OIG will vigorously pursue those who engage in unjust kickback and billing schemes, which generate profits at the expense of veterans and taxpayers. Why Shares of Progenity Are Down More Than 11% on Wednesday, Why Progenity Stock Was Up More Than 24% Friday, Why Progenity Stock Is Soaring on Tuesday, 2 FAANG Stocks Billionaires Are Selling in Droves and 1 They Can't Stop Buying, 1 Unstoppable Growth Stock to Buy Hand Over Fist, According to Wall Street, This State Has the Highest Real Estate Taxes (and It's Not Even Close), Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. The information is only provided as a public service. Form S-1/A (general form for registration of securities under the securities act of 1933) filed with the SEC To make the world smarter, happier, and richer. In connection with this settlement, the Government joined a private whistleblower lawsuit that had been previously filed under the False Claims Act, which alleged that PROGENITY engaged in illegal kickback schemes. Lewis Kahn, Managing Partner The Path Forward. progenity @progenity 10 Nov 2021 Our Q3 earnings call is at 4:30 PM Eastern / 1:30 PM Pacific. HHS-OIG Special Agent in Charge Scott J. Lampert said:Kickbacks and fraudulent billing schemes undermine the integrity of our healthcare system, compromise patient care, and increase the financial burden on taxpayers. Progenity. Abusive Arbitrage Devices Its Time to Get Reacquainted (Episode 2 Tycko & Zavareei Whistleblower Practice Group, How Modern Manufacturing Plants Can Protect Against Ransomware, Cyberattacks, FTC Will Host May 23, 2023, Workshop on Recyclable Claims and the Green Guides. For more information about Progenitys products and pipeline visit www.progenity.com, or follow the company on LinkedIn or Twitter. Its shares ended trading down 3 cents at $9.01 on the Nasdaq Exchange. Under the settlement approved today by U.S. District Judge Loretta A. Preska, PROGENITY will pay $19,449,316 to the United States to resolve the kickback claims and the Medicaid and VA fraudulent billing claims, and also makes extensive admissions regarding the companys conduct. When an agreement is made without adjudication during an impending lawsuit, a settlement agreement lays out the terms of agreement between the parties. Under certain state laws the following statements may be required on this website and we have included them in order to be in full compliance with these rules. The settlement ends all criminal and civil probes. This press release contains forward-looking statements, which statements are subject to substantial risks and uncertainties and are based on estimates and assumptions. Continued development of oral biopharmaceuticals delivery system (OBDS) programs designed for optimized systemic uptake focusing on monoclonal biotherapeutics based on promising preclinical data. Advancement of its PreecludiaTM preeclampsia rule-out test through validation and progressing physician education programs, clinical utility, health economics, and reimbursement. You may occasionally receive promotional content from the San Diego Union-Tribune. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Shares ofProgenity (PROG -3.60%) were up more than 34% on Tuesday. Progenity has two therapeutics programs - namely oral delivery of biotherapeutics and GI-targeted therapeutics. In August 2020, the Company disclosed that an audit uncovered it had overbilled the U.S. government by $10.3 million more than previously disclosed due to the incorrect use of a billing code, the same discontinued legacy billing practices that the Company had previously represented had been remediated.. SAN DIEGO, June 02, 2021 (GLOBE NEWSWIRE) -- Progenity, Inc. (Nasdaq: PROG), an innovative biotechnology company, today announced a transformation strategy that will focus the company primarily on its robust R&D pipeline and better position the business for future growth. Biora Therapeutics Announces Improved Bioavailability Results for its Systemic Delivery Platform Feb 16, 2023. The lawsuit further alleges that PROGENITY provided illegal kickbacks in the form of excessive draw fees to physicians, meals and happy hours for physicians and their staff, and the improper reduction or waiver of patient coinsurance and deductible payments. SAN DIEGO, CA / ACCESSWIRE / July 6, 2021 / The Shareholders Foundation, Inc. announces an update in the lawsuit that is pending for certain investors in shares of Progenity, Inc. (NASDAQ: PROG). endobj Recent FTC Enforcement Action Merits Cyber Insurance Coverage Review, Two Ways to Redefine & Achieve CRM Success. 3 0 obj Progenity, a San Diego biotechnology company that went public last month, will pay $49 million as part of a settlement for overbilling federal health insurance programs and paying kickbacks to physicians who ordered the companys prenatal genetic tests. The Company paid the third party $10 million in the second quarter of 2021 for conducting the development work and for entering into the agreement, and if the Company elects to exercise its option, the Company has agreed to pay the third party an additional $290.0 million for the designated assets. It also tried to get doctors to order Progenity tests by paying them excessive draw fees and providing meals and happy hours for physicians and their staff.

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